Obama speech 'relied on amnesia'

STORY HIGHLIGHTS

• Matt Welch: State of the Union featured content-free calls to action for action's sake


• He says governed might want to know what they've gotten in return for ballooning debt


• Didn't we try repairing infrastructure with the stimulus package? he asks


• Welch: Rand Paul spoke to those who think government should get out of way

Editor's note: Matt Welch is editor in chief of Reason and co-author of "The Declaration of Independents: How Libertarian Politics Can Fix What's Wrong With America" (Public Affairs).

(CNN) -- The two most memorable lines of President Barack Obama's fourth State of the Union address were the ad-libbed: "Get it done" (which doesn't appear in the remarks as prepared), and the emotional "They deserve a vote," concerning victims of gun violence.

As exasperated appeals for an obstructionist Congress to get off its duff, the exhortations provided emotional catnip for Democrats. For the rest of us, however, they were sobering reminders of what governing liberalism has deteriorated into: content-free calls to take action for action's sake.

Consumers of national governance are within their rights to ask just what we've gotten in return for ballooning the cost of the stuff since 2000. The answer may lie in not just what the president said, but what he has assumed we've already forgotten.

Matt Welch

"Let's cut in half the energy wasted by our homes and businesses over the next 20 years," said the president, who promised a "Recovery Through Retrofit" three years ago. "The American people deserve a tax code that ... lowers tax rates for businesses and manufacturers that create jobs right here in America," said the man who before he took office vowed to, uh, give "tax breaks to companies that are investing here in the United States."

That "aging infrastructure badly in need of repair"? Well, what happened to the $50 billion from the stimulus package dedicated to precisely that task, or the $50 billion plan 18 months later? Making college "more affordable"? That has been the motivation for continuous ratcheting of government involvement in higher education, which has -- surprise! -- coincided with a several-decade increase in tuition costs and student loan debt.

Greene: In 2013, democracy talks back

Do-something politics works when Americans have amnesia, or are reacting to headline-making tragedies, or when they just want free stuff. But this irresistible force is butting up against the immovable object of a have-nothing U.S. Treasury. Debt service costs will soon overtake defense spending, and baby boomer entitlements are about to transform the federal government into a check-writing program for senior citizens.

Americans know by now that Obama can't possibly believe his own promises that his policies won't "increase our deficit by a single dime," not only because of his poor track record with that particular vow, but because he spends the rest of his time talking about all the various things the government needs to "invest" to create "broad-based growth." It's a conflict at the basic level of vision with those of us who think prosperity is mostly a private-sector affair that is on balance imperiled, not improved, by the exertions of a deficit-spending government.

Opinion: Obama dares Congress to get the job done

Thankfully, and quite unlike during the 2012 presidential campaign, the competing vision was voiced Tuesday night. Not necessarily by a dehydrated but game Sen. Marco Rubio, R-Florida, who delivered the Republican response to the State of the Union address, but by Sen. Rand Paul, R-Kentucky, who did the honors online for the tea party.

"The path we are on is not sustainable," Paul said, directly. "All that we are, all that we wish to be, is now threatened by the notion that you can have something for nothing, that you can have your cake and eat it, too, that you can spend a trillion dollars every year that you don't have."

Paul dinged Republicans as well as Democrats, targeted military spending as well as entitlements, and spent a good 30 seconds giving a more full-throated defense of wartime civil liberties than the allegedly anti-war candidate Obama ever did.

Most importantly, he laid out a truly alternative vision that speaks directly to the growing number of Americans who feel like the federal government has failed as the engine of economic growth, and needs urgently to take a back seat before it does more harm.

Rothkopf: This time, a president in full

"What America needs," Paul said, "is not Robin Hood, but Adam Smith." As Obamanomics continues underperforming through a second term, it will be fascinating to see whether Ron Paul's kid can get more people to agree.

Follow us on Twitter: @CNNOpinion.

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The opinions expressed in this commentary are solely those of Matt Welch.

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Athletics: Paralympic day to top off London Diamond

LONDON: London's Olympic Stadium will stage three days of athletics in July, including one devoted solely to Paralympic competition, British Athletics has announced.

The London Anniversary Games, which will take place from July 26-28 and in the process mark a year since the opening ceremony of the 2012 Olympics, will incorporate the annual two-day Diamond League meeting on the Friday and Saturday, but also, for the first time, a day of purely Paralympic competition on the Sunday.

Sebastian Coe, who chaired the London 2012 Organising Committee and is now chairman of the British Olympic Association, said it was terrific news.

"I am delighted that the London Anniversary Games has been confirmed as three days of international athletics this July.

"London 2012 was an amazing year for British sport and what a way to celebrate its success by welcoming the world back to London once more to watch the biggest names in athletics."

British middle distance great Coe, the Olympic 1,500 metres gold medallist at both the 1980 and 1984 Games in Moscow and Los Angeles respectively, added he hoped this July's event would build on the success of London 2012.

"It is an important part of the London 2012 legacy that as many people as possible experience world class sport in the world class facilities at Queen Elizabeth Olympic Park and I'm sure the London Anniversary Games will go a long way to inspiring the next generation of track and field fans."

Former Olympic 400m champion Christine Ohuruogu, who grew up in Stratford, added: "The London Diamond League has always been one of my favourite meets so it's fantastic that it's retaining its two day format.

"The atmosphere in the stadium was phenomenal last year and I'll never forget it -- it was very special for me as a local girl."

Officials had already announced the London Diamond League meeting would move to the Olympic venue in the eastern district of Stratford from Crystal Palace in south London.

But on Wednesday they said in addition to the usual track and field meeting on the first two days, the weekend would be topped off by a day of Paralympic competition in the Olympic Stadium, that will come soon after the International Paralympic Committee World Championships in Lyon, eastern France.

Earlier in July, two rock music concerts will see the 80,000-seater Olympic Stadium used for the first time since the Paralympics closing ceremony in September.

Although the Olympic Stadium is due to stage the 2017 World Athletics Championships, doubt remains over its long-term future.

English Premier League football club West Ham have been named as the preferred bidder for the tenancy and a final decision on their bid is expected before April.

The £292 million ($463 million, 348 million euro) complete transformation of the Olympic Park, which began when the London 2012 Games ended, is set to take 18 months.

-AFP/gn

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Sheriff: 'We did not intentionally burn' the cabin

STORY HIGHLIGHTS

• Radio traffic describes use of gas canisters at cabins


• Slain officer's widow thanks mourners: "A lot of people loved Mike"


• Villaraigosa says police have a "reasonable belief" that Dorner died in a mountain standoff


• Authorities have not conclusively identified the body found near Big Bear Lake

Follow the story here and at CNN affiliates KCBS/KCAL, KABC and KTLA. Anderson Cooper 360º devotes the entire hour to the frenzied manhunt, the final shootout, and the people allegedly killed by an ex-LA cop. Watch "9 Days of Terror: The Hunt for Christopher Dorner" Wednesday at 8 p.m. ET on CNN.

Riverside, California (CNN) -- Authorities said Wednesday they are reasonably sure that the body found inside the burned cabin near Big Bear Lake, California, is that of Christopher Dorner, the rogue ex-cop who allegedly had been pursuing a vendetta against his fellow officers.

"We believe that this investigation is over, at this point, and we'll just need to move on from here," San Bernardino Sheriff John McMahon told reporters.

Although the description and behavior of the man who was killed are consistent with Dorner, officials "cannot absolutely, positively confirm it was him," McMahon said.

"We're not currently involved in a manhunt," he said. "Our coroner's division is trying to confirm the identity through forensics."

Authorities say Dorner launched a guerrilla war against the Los Angeles Police Department over what he considered his unfair dismissal in 2009.

McMahon identified a sheriff's detective who was fatally shot Tuesday by the man presumed to have been Dorner as Jeremiah MacKay. MacKay, 35, was a 15-year veteran and married with two children, a 7-year-old daughter and a 4-month-old son.

Another officer has undergone "a couple of different surgeries" after being wounded in the shootout. "He's in good spirits and should make a full recovery after a number of additional surgeries," McMahon said.

The two men were ambushed when they responded to a report of a vehicle stolen by a suspect matching Dorner's description, McMahon said.

"It was like a war zone, and our deputies continued to go into that area and tried to neutralize and stop the threat," McMahon said. "The rounds kept coming, but our deputies didn't give up."

The suspect then fled into a nearby vacant cabin, which caught fire after police shot tear gas canisters into it, McMahon said.

Although the canisters included pyrotechnic tear gas, which generates heat, "We did not intentionally burn down that cabin to get Mr. Dorner out," McMahon said.

It was not clear how long the man believed to have been Dorner had been in the cabin, said San Bernardino County Deputy Chief Steve Kovensky.

Last Thursday, after Dorner's burned-out vehicle was found nearby, "each cabin" in the area had been inspected for signs of break-in or open doors, he said.

"I don't believe that there (was) anybody in there on Thursday, at the start of the investigation," he said. "We did not find any forced entry."

But neighbors have told CNN that no one knocked on their doors.

It wasn't clear when a formal identification could be made of the charred remains found in the cabin about 100 miles east of Los Angeles after Tuesday's shootout with police. Until then, "a lot of apprehension" remains in the ranks of the LAPD, Lt. Andy Neiman said.

"It's been a very trying time over the last couple of weeks for all of those involved and all those families, friends and everybody that has been touched by this incident," he said.

On Wednesday, police from around the Los Angeles area and beyond gathered to bury Michael Crain, who was fatally shot by the 33-year-old former Navy officer.

Dorner is also accused of killing the daughter of a former LAPD captain and her fiance and of shooting three other cops, including Crain's partner.

A squad of bagpipers led Crain's flag-draped casket through a cordon of blue uniforms into a church in Riverside, the Los Angeles suburb where he served 11 years on the force.

The mourners who packed the church included California Gov. Jerry Brown, his Highway Patrol chief and law enforcement from a number of other agencies around the region.

"I knew that communities would reach out, and I knew a lot of people loved Mike," Regina Crain, the slain officer's widow, told them. "And I knew that I would have support no matter what. But I really did not realize the sheer scale of this, and how many people are touched by his life. It gives me really great comfort to see that, and I want to thank you all."

'A very trying time' for the LAPD

Timeline in manhunt

Investigators began scouring the mountains last Thursday, when investigators found Dorner's scorched pickup. Police, sheriff's deputies and federal agents swarmed into the area, working through a weekend blizzard, but the trail was cold for days.

On Sunday, the San Bernardino County Sheriff's Department said it had scaled back the search. Villaraigosa announced a $1 million reward for information leading to Dorner's arrest and conviction, spurring hundreds of tips.

Then, early Tuesday afternoon, California Fish and Wildlife wardens said they had spotted a man who appeared to be Dorner driving a purple Nissan down icy roads near Big Bear Lake.

'Here comes this guy with a big gun'

The wardens, driving in two different vehicles, chased Dorner, and a gun battle ensued. One of the warden's cars was hit, and Dorner crashed his car and ran, according to authorities. He then carjacked a pickup truck.

Rick Heltebrake, a camp ranger, said he was driving when he saw the crashed purple vehicle -- and then something terrifying.

How authorities identify a burned body

"Here comes this guy with a big gun, and I knew who it was right away," Heltebrake told CNN affiliate KTLA. "He just came out of the snow at me with his gun at my head. He said, 'I don't want to hurt you. Just get out of the car and start walking.' "

Heltebrake said the man let him take his dog and walk away with his hands up.

"Not more than 10 seconds later, I heard a loud round of gunfire," Heltebrake said. "Ten to 20 rounds, maybe. I found out later what that was all about."

Dorner fled to a nearby cabin and got into another shootout, this time with the San Bernardino County deputies, killing one and wounded another.

Some of the firefight between police and the suspect was captured live on the telephone of a reporter for CNN affiliates KCBS and KCAL. Police in Los Angeles listened live over police scanners broadcast on the Internet, Neiman said.

"It was horrifying to listen to that firefight," he said. "To hear those words, 'officer down,' is the most gut-wrenching experience you can have as a police officer, because you know what that means."

'Maintain your discipline'

A law enforcement source told CNN the cabin caught fire when police tossed smoke devices inside. The cabin was fully ablaze within minutes and burned for hours as authorities waited at a distance.

Devices such as "flash-bang" grenades and tear gas canisters designed to disorient and disable suspects can cause fires, CNN contributor Tom Fuentes, a former FBI assistant director, said Wednesday. But it wasn't clear exactly how the fire started.

Audio from a Los Angeles television station captured the sound of someone early in the standoff shouting, "Burn it down ... burn that goddamn house down. Burn it down." It's not clear who used those words.

But the order to use smoke canisters -- "burners" -- didn't come for another two hours, according to San Bernardino County sheriff's radio traffic.

"Seven burners deployed, and we have a fire," one officer reported at 4:16 p.m. (7:16 p.m. ET).

Five minutes later, a single gunshot was reported from inside the house. A senior officer ordered units around the cabin, "Stand by. Maintain your discipline." About a minute after that, officers reported ammunition exploding inside.

After initially saying that no body had been found, sheriff's investigators confirmed overnight that they had found charred human remains among the ashes.

Dorner cheered in some quarters

Dorner had vowed to kill police officers to avenge what he called his unfair termination. He was fired after accusing his training officer of kicking a suspect during a July 2007 arrest -- a complaint the LAPD concluded was unfounded.

Talk Back: Does the Dorner case teach us anything about guns?

The department accused him of lying to superiors and to internal affairs investigators and forced him out in January 2009. Dorner challenged his dismissal in court but was unsuccessful.

Dorner was first named a suspect in two shooting deaths on February 3: Monica Quan, the daughter of his police union representative, and her fiance, Keith Lawrence.

Police say he killed Crain and wounded Crain's partner in an ambush on their patrol car Thursday. They say he also wounded an LAPD officer who chased him in the suburban city of Corona, California.

In a manifesto explaining his rampage, Dorner said nothing had changed in the LAPD since its scandals of the 1990s, the Rodney King beating and the Rampart police corruption case. Those allegations have struck a chord with some who say that, despite the four killings, Dorner was seeking justice.

Shadowed by that history, LAPD Chief Charlie Beck announced Saturday that the department would re-examine its proceedings against Dorner. The review is "not to appease a murderer," but "to reassure the public that their police department is transparent and fair in all things we do," he said.

CNN's Miguel Marquez, Paul Vercammen, Stan Wilson, Casey Wian, Kathleen Johnston, Alan Duke, Lateef Mungin, Chelsea J. Carter, Michael Martinez, Holly Yan and Michael Pearson contributed to this report.

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Source: American, US Airways merger approved

Updated 8:13 PM ET

(MoneyWatch) A source told CBS News that the boards of American Airlines and US Airways (LCC) have approved a merger that would create the world's biggest carrier.

Under the deal, which is expected to be unveiled Thursday if the timeline isn't moved up sooner and there are no last-minute snags, the combined airline would keep the "American" name. It would still require federal approval, although that is virtually ensured. US Air CEO Doug Parker is expected to lead the combined company.

A merger of US Air and American would surpass a 2010 tie-up between United Airlines (UAL) and Continental and a 2008 deal joining Delta (DAL) and Northwest. The merged American would be the largest carrier and sport a market valuation of roughly $10 billion.

Although airlines tout such consolidation as a way to cut costs and expand service amid intense competition, whether industry mergers raise fares is an open question. Many analysts say yes because reduced competition in any business often results in higher prices. One study found that ticket prices went up more than 20 percent between Detroit and Atlanta after Delta bought Northwest. Fares went up more than 30 percent on routes between Chicago and Houston, as well as Newark to San Francisco, after the United-Continental deal.

In seeking to run more efficiently, merging airlines also often cut capacity and eliminate routes. 

Play Video

American close to merger with U.S. Airways

Other analysts are more optimistic about the potential benefits to travelers. They say the three largest U.S. airlines still must compete with discount carriers such as Southwest (LUV), which has flourished for years by offering low-cost flights and no-frills service.

The consolidation trend is largely blamed on the price of fuel. Oil now costs so much more per barrel than it did 10 years ago that one analyst says the margin of profit on many flights has shrunk to the value of a single seat. That means an airline can lose money if it flies with one single empty middle seat. The days of elbow room are over.

American Airlines has been operating under court supervision since declaring bankruptcy in November 2011.

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Ship Stranded: Love Boat to Horror Honeymoon

A Texas couple's fantasy wedding quickly turned into a nightmare honeymoon when the fire-damaged Carnival Cruise ship carrying them became stranded in the Gulf of Mexico.

Rob Mowlam, 37, and Stephanie Stevenson, 27, of Nederland, Texas, got married on the Carnival Triumph on Saturday. The four-day cruise was meant to be back to shore on Monday, but was left disabled by an engine fire on Sunday.

The ship is being slowly towed to shore and is expected to dock in Mobile, Ala., on Thursday if weather permits. The vessel is without air conditioning, many working toilets and some restaurant service. Passengers, many who are sleeping in tents on deck, have told ABC News the smell on the ship is foul.

That is the honeymoon setting for Mowlam and Stevenson.

"[Rob Mowlam] had been with his girlfriend, or fiance, for a long period of time and they just took the next step," Mowlam's brother James Mowlam III told ABCNews.com. "The captain is the king of the world when they're on the boat and he hitched them up."

James Mowlam said he was shocked when he heard about the stranded boat and the increasingly dire conditions on the ship.

"It is an atrocious scene to be subjected to," he said.

Mowlam said he has not been able to communicate with his brother, but that his father has had sporadic communication with him.

"It would be my guess that this would probably not be on anyone's great list of memorable wedding experiences," Mowlam said with a laugh. "Although, my mom told him that she was hoping they had a memorable wedding and I think this would classify as a memorable wedding experience."

Lt. Cmdr. Paul McConnell/U.S. Coast Guard/AP Photo

Carnival Cruise Ship Making Its Way to Port Watch Video

Carnival Cruise Ship Stranded for Third Day Watch Video

Carnival Cruise Ship Stranded off Yucatan Peninsula Watch Video

The bride's brother, Justin Davis, told ABCNews.com that his sister works for a doctor's office and the cruise was a gift from the doctor to the staff.

Davis has not been able to speak to Stevenson but said that her two young sons are being cared for by her mother. He said his sister is tough and he guesses she's probably not scared.

"She might be a little aggravated at the situation, but I'd say she's [probably] handling it really well," he said.

Others on the ship do not seem to be handling the situation so well.

Elderly and disabled passengers aboard the ship are struggling to cope with the worsening conditions, according to at least one passenger.

"Elderly and handicap are struggling, the smell is gross," passenger Ann Barlow text-messaged ABC News overnight. "Our room is leaking sewage."

The head of Carnival Cruise Lines said the British-U.S.-owned company was working hard to ensure the thousands of passengers stranded on the disabled ship were as comfortable as possible while the vessel was being towed to a port in Alabama.

"I need to apologize to our guests and to our families that have been affected by a very difficult situation," Carnival Cruise Lines president and CEO Gerry Cahill said at a news conference Tuesday evening.

It was the first time since a fire erupted in Triumph's engine room Sunday, knocking out its four engines, that a company representative had spoken publicly. The Triumph, with roughly 4,200 people on board, was left bobbing like a 100,000-ton cork for more than 24 hours. Giant sea-faring tugboats then hooked up to the ship and began towing the nearly 900-foot-long ship to land.

Carnival spokeswoman Joyce Oliva told The Associated Press Tuesday that a passenger with a pre-existing medical condition was taken off the ship as a precaution. Everyone else will likely have to weather conditions such as scarce running water, no air conditioning and long lines for food.

Back on land, passenger Barlow's 11-year-old twins told ABC News Tuesday they are worried as more passengers continue to talk about living with limited power and sanitation.

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Was euro ever 'about to collapse'?

By Ramy Inocencio, for CNN

February 12, 2013 -- Updated 0948 GMT (1748 HKT)

STORY HIGHLIGHTS

• Former European Central Bank chief says euro was never going to collapse


• In 2012, critics predicted at least partial breakup of 17-member eurozone


• Euro plunged to 25-month low against U.S. dollar in July 2012


• Currency war fears prevail in run-up to G20 finance ministers meeting this week

Hong Kong (CNN) -- Less than six months ago, eurozone watchers had been predicting the breakup of the 17-member bloc of nations as the euro plunged to a 25-month low against the U.S. dollar last July.

Even as recently as November, Warren Buffett, the famed CEO of Berkshire Hathaway, said of the eurozone's future that "it's hard to tell exactly how it comes out."

But since then, the euro has appreciated nearly 11% as its member countries battled to contain sovereign debt crises, rising unemployment and social unrest. The euro now stands at a 13-month high against the greenback.

And flying in the face of last year's critics, former European Central Bank chief Jean-Claude Trichet told CNN's Nina dos Santos that the euro "was never about to collapse" and that its viability as a currency is solid.

"The euro as a currency has never been put in question," asserted Trichet, while at the same time admitting the euro area's financial stability and credit worthiness had been tested.

As for the euro, he said it "is certainly reliable and credible."

Yet, the euro's gains over the past seven months is a mixed blessing. Arguments have long-existed for and against a stronger currency. Appreciation means investors are more confident in the euro but eurozone exports become more expensive when sold overseas; devaluation makes the bloc's exports more competitive globally, which many eurozone officials would prefer.

But if the world's major economies devalued their currencies to make exports more competitive and to spur their economies to growth again, it would be chaos, says Trichet.

"If the reasoning is the same in all constituencies you have nothing but...a 'beggar-thy-neighbor' policy which is a recipe for catastrophe."

That catastrophe could take the form of an all-out currency war. And this week, the world's leading banks called on the G20 group of richest nations to avoid such an outcome.

"We believe major central banks should focus on enhancing their cooperation...to guide market expectations and thus help avoid a disorderly interest rate adjustment process and undue exchange rate volatility," the Institute of International Finance wrote in a letter to Russian Finance Minister Anton Siluanov, who is chairing the G20 finance minister's meeting later this week.

But with the eurozone in recession for the second time in four years, the desire to devalue the euro may be strong. The European Central Bank in December cut its 2013 growth forecast, with a best-case growth rate scenario of only 0.3%.

"It is no time for complacency," warned Trichet who added that the central banks of the United States, Japan and Europe as well as their private sectors should get their "house(s) in order."

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Peru archeologists find ancient temple

LIMA: Peruvian archaeologists have discovered a temple believed to be about 5,000 years old at the ancient archaeological site of El Paraiso in a valley just north of Lima, the Culture Ministry said Tuesday.

If the date is confirmed, it would be among the oldest sites in the world, comparable to the ancient city of Caral, a coastal city some 200 kilometres (125 miles) to the north.

The discovery, dubbed the Temple of Fire, was found in one of the wings of El Paraiso's main pyramid. It includes a hearth that experts believe was used to burn ceremonial offerings.

"The smoke allowed the priests to connect with the gods," said Marco Guillen, who led the team of researchers who made the find.

Archaeologists found the hearth in mid-January as they were carrying out conservation work at a set of 4,000-year-old ruins known as El Paraiso, located some 40 kilometers northeast of Lima in the Chillon River Valley.

The discovery shows "that the Lima region was a focus of civilizations in the Andean territory," Deputy Culture Minister Rafael Varon told reporters.

Archaeologists believe the ancient coastal civilisations raised crops including cotton, which they traded with coastal fishermen for food.

El Paraiso, spread across 50 hectares (125 acres), has 10 buildings and is one of the largest ancient sites in central Peru.

-AFP/gn

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Hear suspect's gunfight with cops

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State of the Union: "Act two" of Obama's 2nd term

When the curtain rises on President Obama's State of the Union speech tonight, the White House wants it viewed as "Act Two" - a follow-up to the national goals and policy objectives of which he spoke 22 days earlier on the West Front of the Capitol.

"The president has always viewed the two speeches, the inaugural address and the State of The Union, as two acts in the same play," said press secretary Jay Carney yesterday.

Though Mr. Obama has given more speeches this year on his proposals to stem gun violence and overhaul immigration policy, the "core emphasis" of his speech tonight is the economy.

"You'll hear from the president a very clear call for the need to take action to help our economy grow and help it create jobs," said Carney.

That includes the showdown with Congress over the mandatory spending cuts due to take effect starting March 1.

Play Video

Valerie Jarrett on SOTU: "An optimistic vision"

The president will urge Congress "not to shoot the economy in the foot," said Carney, by agreeing to his plan to avert the across-the-board spending cuts which the White House portrays as mindless and severe.

The president will again make it clear he wants a "balanced" plan that calls for additional tax revenue from America's top earners.

"My message to Congress is this: let's keep working together to solve this problem," the president said Saturday in his weekly address.

But Republican leaders say Mr. Obama already got his tax hikes as part of the "fiscal cliff" package, and now needs to focus exclusively on reductions in spending.

It'll be Mr. Obama's seventh appearance before a Joint Session of Congress and he'll be taking the rostrum aware that the national unemployment rate still hovers just under 8 percent and economic growth fell into negative territory at the end of 2012.

"The economy is not in a worse place than it was before," said Carney, pointing to the progress made since Mr. Obama's first State of the Union Address. "We were in economic freefall."

He said the president will make the case that "we are at a moment when the economy is poised to continue to grow...to build on the job creation that we've achieved -- over 6.1 million jobs created by our businesses over the past 35 or 36 months."

Carney added the president will propose further steps to grow the economy in a way that makes the middle class more secure and helps those trying to climb the ladder into the middle class.

"That is absolutely going to be his focus in the second term as it was in the first term," said Carney.

1/2

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Officer Dies After Dorner Shootout; Cabin on Fire

The remote California mountain cabin in which fugitive ex-cop Christopher Dorner has barricaded himself in tense standoff with police is on fire, following a shootout with police in which one officer was killed and another wounded.

Once the fire started, a single shot was heard from inside the cabin and then flames and a large column of black smoke were seen rising above the snow-covered trees near Big Bear, Calif., ABC station KABC-TV in Los Angeles reported.

Dorner is a former Navy marksman and Los Angeles Police Department officer charged with murdering a police officer and suspected in the deaths of two other people, including the daughter of a former LAPD captain, earlier this month.

Dozens of local, state and federal authorities are at the scene in the San Bernardino Mountains, and have the the cabin surrounded. Dorner has sworn to kill police and their family members in a manifesto discovered online last week.

FULL COVERAGE: Christopher Dorner Manhunt

The search for Dorner, one of the largest manhunts in recent memory, took a turn this afternoon when police received a call that a suspect resembling Dorner had broken into a home in the Big Bear area, taken hostages and stolen a car.

Police said the former cop, believed to be heavily armed and extremely dangerous, took two women hostage before stealing a car just around 12:20 p.m. PT, police said.

Christopher Dorner Manhunt: Police Exchange Fire With Possible Suspect Watch Video

Fugitive Ex-Cop Believed Barricaded in Cabin, California Cops Say Watch Video

The two hostages, who were tied up by Dorner but later escaped, were evaluated by paramedics and were determined to be uninjured.

Officials say Dorner crashed the stolen vehicle and fled on foot to the cabin where he barricaded himself and exchanged fire with deputies from the San Bernardino Sheriff's Office and state Fish and Game officers.

Two deputies were wounded in the firefight and airlifted to a nearby hospital, where one died, police said. The second deputy was in surgery and was expected to survive, police said.

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Police have sealed all roads going into the area and imposed a no-fly zone above the cabin, nestled in a wooded area that has received several inches of snow in recent days.

Four Big Bear area schools were briefly placed on lockdown.

The San Bernardino County Sheriff's Department stopped all traffic leaving the area and thoroughly searched vehicles, as SWAT team and tactical units could be seen driving toward the cabin, their sirens blaring.

Authorities say they believe Dorner may be watching reports of the standoff and have asked media not to broadcast images of police surrounding the cabin.

"If he's watching this, the message ... is: Enough is enough. It's time to turn yourself in. It's time to stop the bloodshed. It's time to let this event and let this incident be over," said Los Angeles Police Department spokesman Andy Smith, told reporters at a press conference.

Dorner faces capital murder charges that involve the killing of Riverside police officer Michael Crain, who was gunned down in an ambush last Thursday.

Since then a massive manhunt has been under way, focused primarily in the San Bernardino Mountains, but extending to neighboring states and as far away as Mexico.

A capital murder charge could result in the death penalty if Dorner is captured alive and convicted. Crain was married with two children, aged 10 and 4.

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